Jeremy Cox, principal analyst and head of CRM research and insights at Ovum discusses the challenges, best practices and exciting future of multi-channel customer experience. View this presentation to get a detailed framework for building out your multi-channel customer service strategy and learn why just social is not enough.
A key Darwinianquestion to ask yourselves is: ‘can you adapt as fast as the world around you?’’Change has always been a fundamental but its far more disruptive and happening at an accelerated rate.It isn’t one thing but a combination of forces creating this maelstrom of disruption:Technology, Business model innovators changing the rules of the game, Power has shifted to the customer and their expectations are risingFirms find it hard to differentiate and no innovation has more than a short head start so firms find themselves competing more and more on price further eroding profit margins.And on top of all that increasingly governments are adding compliance burdens, like running a hundred metres with a rucksack full of rocks. And that’s before you throw in the drag of old legacy systems holding everyone back.
Technology feeds business model innovation and new entrants have come in over the years across the globe to change the rules of the game.Amongst perhaps the lesser known innovators is Tata Sky in India launched Direct To Home TV only a few years ago and now have 10million subscribers. Within their first 6 months Nielsen benchmarked theirservice capabilities against global peers and TATA Sky came out top! The art of the possible is changing and the more innovative firms are actively exploring how technology can give them a unique or superior relationship with their customers. Amazon has set a high benchmark for the buying experience by which other companies will be judged.First Direct in UK consistently wins customer satisfaction awards and is leagues ahead of other retail banks. and so on…….
And now customers have more channels of communication to choose from making it a much more complex environment
CRM can help but only if it is applied strategically and holistically . This framework from Prof Adrian Payne and Pennie Frow, demonstrates a holistic approach.AS you can see its an enterprise-wide concern, not just the ‘front office’ triumvirate of sales marketing and service
The Business ChallengeNationwide is committed to the Customer Choice Distribution model, which focuses on delivering a superior customer experience in the channel of the customer’s choice. In evaluating their online automotive insurance processes they found that their insurance quoting system didn’t cater to specialty insurance buyers (those with tickets and accidents). Prospective customers were getting lost and never returning to the organization’s site. The abandonment rate was increasing while the customer satisfactionrate was decreasing. The bottom line was that Nationwide was losing customers—both independent consumers as well as insurance agents—to competitors.After an extensive evaluation, Nationwide concluded that agent-assisted service via rules-based proactive chat invitations was the best way to address this challenge. It would enable the company to engage prospective customers before they abandoned the site and help them successfully complete the online specialty insurance quote. Nationwide believed the benefits of this strategy would be stronger customer satisfaction scores—and, most importantly, a significant increase in revenue from specialty insurance customers and insurance agents.This was a new technology implementation, and their project plan required a chat solution that had the ability to:Offer a proactive chat invitation to a Web site visitorEasily manage proactive rules including time, events, and the agent push optionEasily integrate with internal applications, providing agents with a unified customer viewScale to meet expansion requirementsIntegrate with other communication channelsEither host, bring the solution in-house, or a combination of bothShare on linkedinShare on facebookShare on twitterShare on emailMore Sharing ServicesProduct: Moxie’s Chat SpacesIndustry: Financial ServicesDownload Success Story (.pdf)Web site:http://www.nationwide.comBusiness Profile: Nationwide is one of the largest insurance and financial services companies in the world.Business Challenge: Nationwide’s specialty insurance customers were having difficulty finding answers to their inquiries and abandoning the Web site. As a result they were losing prospective customers—both independent consumers as well as insurance agents—to competitors.Solution: Nationwide concluded that agent assisted service via rules-based proactive chat invitations was the best way to decrease abandonment rates, increase customer satisfaction, and add significant revenue from specialty insurance customers.Results:C-sat ratings for the chat experience is 4.08 out of 5.082.3% Net Promoter score captured 30-40% of previously abandoningcustomersCustomer wait time of five seconds and decliningCompletely recuperated associated costs within eight months of roll-outSpaces™ by MoxieAfter extensive vendor evaluations, Nationwide selected and implemented the hosted version of Sales Chat Spaces and created their Nationwide Customer Value Team. The company chose Sales Chat Spaces because it was the best solution to address their immediate business challenges. Additionally, Moxie’s Proactive Chat is a feature of a suite of products that could scale to meet future needs.The Implementation StrategyNationwide understood that it had two groups that, in order for this project to be successful, needed to buy into and support the new technology. The company involved both the Customer Value Team and end users to create the proactive chat invitation rules, internal routing rules, and chat content. It also worked to define a continuing improvement process for their service optimization initiative. The process was to evaluate, adjust, and re-launch at appropriate intervals following the initial launch.The ResultsROI exceeded the cost of the implementation within eight months of project roll-out. Moxie’s Proactive Chat helped Nationwide improve the customer and insurance agent experience at Nationwide. “Customers are engaging with contact center agents in five seconds or less. Their happiness was evident in our Net Promoter score (‘Would you recommend to family and friends?’) which is 82.3%,” says Mr. Browder. “Additionally our customer satisfaction rating for the chat experience is 4.08 out of 5.0.”After implementing Moxie’s Sales Chat Spaces the average handle time is five minutes or less. However, agents can now handle up to five chats multaneously—dramatically increasing contact center efficiency and improving the customer experience. “Moxie’s Proactive Chat has exceeded our expectations; for example, we expected fewer than 40 chats per day and we are now experiencing over 100 per day,” Mr. Browder explains. Most importantly, Nationwide has seen bind rates (contracts with customers) increase by factor of five. This is enabling the organization to achieve their revenue goals for specialty insurance. “The ROI of this initiative and our proactive chat technology acquisition is currently at five to ten percent. However, now that we’ve exceeded break even, this figure will improve each month that brings in chat-assisted insurance binds,” concluded Mr. Browder. In the coming months, Nationwide plans to extend both proactive and reactive chat capabilities to the sales team followed by the service and support team. Nationwide also plans to add co-browsing capabilities to its chat implementation in order to assist customers with more-complex issues. This will be particularly valuable in servicing the company’s internal business partners.“The Customer Value Team is dedicated to [Moxie’s] Proactive Chat. The project exceeded our expectations; [Moxie’s] Proactive Chat’s overwhelming success and ease of adoption has removed the barriers in other areas of new technology.”—Ryan J. Browder, Manager, Customer Choice Distribution, Nationwide
IT’s plain and simple the future is only guaranteed if we can grow the customer base, by nurturing existing customers and attracting new ones over time.This generates the cash flows nothing else, and shareholder value is the result – barring the odd speculative hiccup from the stock market.
Jack Welch puts it concisely.I also love his perspective on shareholder value.But for the last word……………
The people dimension is at the core of the customer-adaptive enterprise. Who can argue with someone who is successfully running and inspiring over 300 companies world-wide?
Multi Channel Customer Experience - Challenges Practices Future